Home   News   Article

Highlands’ pumped storage hydro can reap “significant employment opportunities” as Loch na Cathrach scheme leads way with planned investment from Norway state-owned Statkraft





Scott Gilbert, Statkraft’s Loch na Cathrach project director, and Shona Clyne, UHI’s head of economic development, with the new report highlighting jobs and skills opportunities from hydro pumped storage development.
Scott Gilbert, Statkraft’s Loch na Cathrach project director, and Shona Clyne, UHI’s head of economic development, with the new report highlighting jobs and skills opportunities from hydro pumped storage development.

A new report is highlighting “significant employment opportunities” for the Highlands arising from a flagship pumped storage hydro project.

The Loch na Cathrach pumped storage scheme (PSH) was acquired by Norwegian state-owned hydropower company Statkraft, Europe’s largest generator of renewable energy, in late 2023.

The independently-produced report, funded by Statkraft and commissioned by the University of the Highlands and Islands (UHI), has been published to guide education and skills planning in the Highlands.

It examined the supply and demand of skills in the Highlands and found that up to 500 workers would be required during the peak construction period.

To maximise employment and training opportunities for local people, however, a number of challenges would to be overcome.

The PSH scheme will store excess renewable energy for later use when required, such as when renewables production is low or when demand increases significantly.

Acting as a giant ‘water battery’, the firm says Loch na Cathrach will provide clean, flexible power for Scotland and the UK.

Long duration electricity storage (LDES) is predicted to play a critical role in enabling the deployment of more domestic renewables and strengthening the UK’s energy security.

Acting net zero and energy secretary Gillian Martin MSP said: “Increasing our long duration electricity storage capacity, including pumped hydro storage, is crucial to the energy transition.

“We recognise the critical importance of providing the current and future workforce with high-quality, lifelong skills and the pivotal role this plays in our plans to unlock Scotland’s green economic potential.

Gillian Martin MSP
Gillian Martin MSP

“The Scottish Government is working to ensure that the system is more responsive and in a better position to meet our economic, environmental and social needs and ambitions.”

Pending clarity from the UK Government and Ofgem on the finance mechanism – allowing a final investment decision to be taken by Statkraft – the project is expected to support hundreds of jobs during construction.

It will provide locally-based, permanent roles once operational by the end of 2030.

Statkraft’s own projections point to 60 per cent of those construction roles being either skilled

or semi-skilled, including opportunities in civil engineering and tunnel engineering. Additionally, there will be over 120 people employed in non-construction positions like health and safety, accountancy and other management and support roles.

The report also notes that Loch na Cathrach is just one of a number of similar projects proposed for the Highland area over the next few years.

It warns there is a risk of demand for skills outstripping supply and urges training providers, such as UHI, to consider the profile of skills needed.

While PSH is seen as a vital technology for balancing the grid and supporting the integration of renewables, it faces challenges due to high up-front costs.

Statkraft and other developers are waiting for the UK Government and Ofgem to confirm details of a new finance mechanism to help overcome these obstacles.

Energy Minister Michael Shanks MP said: “We’re reversing a legacy that has seen no new long duration storage built for 40 years and taking steps to unleash private investment in the technology.

“This can store homegrown renewable power for when it’s needed, helping deliver our clean power mission.

“Not only will this make us more energy secure, protecting billpayers from the rollercoaster of global fossil fuel markets, but will also create good news jobs in the industries of the future.

“We’re working closely with industry, unions and the Scottish Government to ensure workers have the skills to take advantage of these opportunities.”

Iain Robertson, Statkraft’s head of Scotland, said: “Loch na Cathrach can help support a generation of skilled workers in the Highlands, as well as having a transformational impact on our energy security.

Iain Robertson, Statkraft’s head of Scotland.
Iain Robertson, Statkraft’s head of Scotland.

“This timely report confirms the opportunities it brings but also sets out the challenges in upskilling the workforce so we can ensure it delivers the maximum employment benefits.

“Statkraft is committed to backing future skills development by utilising its existing partnerships with education institutions like UHI and undertaking outreach work to highlight the opportunities that significant infrastructure projects like Loch na Cathrach can offer.

“But we can’t do this alone. It requires renewable energy developers, education providers, local authorities and governments to work together to realise the opportunities.”

Scott Gilbert, Statkraft’s Loch na Cathrach Project Director, added: “We stand ready to play our part, ensuring the local workforce are informed and can meet the demand for this and other similar projects in the area.

“If we get this right, we’ll make a significant contribution towards the decarbonisation of the electricity grid by 2030, as well as providing employment opportunities for a generation of skilled clean energy workers.”

Shona Clyne, UHI’s head of economic development, said: “With a student population of over 30,000, and as one of Scotland’s largest providers of apprenticeships, the study findings will be extremely beneficial to UHI, providing key information to enable us to develop our curriculum, and offer options to create and match graduates with industry appropriate skills.”


Do you want to respond to this article? If so, click here to submit your thoughts and they may be published in print.



This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies - Learn More